DECEMBER 2013
Reimbursing moving costs
Continued from page 7
8th to 14th, 15th to 21st and the 22nd to
the end of the month.
If you use a service bureau or similar
institution to remit your deductions, it is
still your responsibility to make sure the
institution withholds your deductions
and remits them on time.
Reporting compensation for a housing loss
Question: We have agreed to compensate one of our employees for a financial
loss he incurred in selling his home in
one city and buying a new one in another due to a job change within the
company. We are compensating him a
total of $75,000, to be paid in three installments of $30,000 in December 2013,
$25,000 in April 2014 and $20,000 in
September 2014. I'm not sure how to report the payment on the employee's T4.
Answer: If an employer pays or reimburses an employee for a housing loss,
half of the amount paid or reimbursed
that exceeds $15,000 is a taxable benefit to the employee. If paid in cash, the
taxable benefit is subject to Canada/
Quebec Pension Plan contributions, em-
ployment insurance (EI) and Quebec Parental Insurance Plan (QPIP) premiums
and income tax deductions. (If not paid
in cash, do not deduct EI or QPIP premiums).
Include the amount of the taxable
benefit in box (14) and in the "other information" area of the T4 under code 40.
If the employee is in Quebec, also report
the taxable benefit on an RL-1 in boxes
(A) and (L).
In this case, because the taxable benefit occurs in both 2013 and 2014, an
amount for the taxable benefit must be
reported in both years:
• For 2013 year-end reporting, the taxable benefit would be $7,500 (1/2 x
($30,000 - $15,000))
• For 2014 year-end reporting, the taxable benefit would be $22,500 (1/2 x
($75,000 - $15,000) - $7,500 (the taxable
benefit reported in 2013)).
Annie Chong is the manager of the
payroll consulting group at Carswell,
a Thomson Reuters business. She
can be reached at annie.chong@
thomsonsreuters.com or (416) 298-5085.
Visit carswell.com for more information.
LEGISLATIVE ROUNDUP | CHANGES IN PAYROLL LAWS AND REGULATIONS FROM ACROSS CANADA
Continued from page 5
■ PRINCE EDWARD ISLAND
2014 reminder:
No tax rate changes
Effective Jan. 1, the P.E.I. personal income tax rates and ranges will remain
at 9.8 per cent, 13.8 per cent and 16.7
per cent.
■ QUEBEC
QPIP maximum insurable
earnings, CNT levy
increasing in 2014
Both the maximum insurable earnings
amount for the Quebec Parental Insurance Plan (QPIP) and the maximum
amount subject to the levy to finance
the Commission des normes du travail
8
will increase from $67,500 to $69,000 on
Jan. 1.
The province had previously announced that for 2014 employer and
employee QPIP premium rates would
remain at their current levels of 0.559
per cent and 0.782 per cent, respectively.
■ SASKATCHEWAN
2014 reminder:
No tax rate changes
Effective Jan. 1, the Saskatchewan provincial personal income tax rates will remain as follows: 11 per cent, 13 per cent
and 15 per cent. Due to the indexing
of the income tax system, the income
thresholds for each rate will be revised
for next year.
For more payroll news and information,
visit www.payroll-reporter.com.
Canadian HR Reporter, a Thomson Reuters business 2013
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